We maintain Neutral on the rubber gloves sector.
Overall demand for rubber gloves is resilient as higher sales volume of nitrile
gloves more than offset the flat to lower sales volume of latex gloves.
However, re-rating catalysts for the sector are scarce. Two stocks under our
coverage appear fully-valued, as they trade at mid-to-high teens PER as
compared to their pedestrian earnings growth. Our only Buy call is Kossan
Rubber Industries due to its undemanding valuation and a product mix consisting
of less natural rubber gloves, of which is sensitive to the latex price
movement.
Other reports
Other Malaysian news
§ CIMB
Group: To start business in Australia
§ TNB:
Azman Mohd to be CEO
§ TM: Eyes 1,000
subscribers a month with Panasonic tie-up
§ Boustead
Holdings: Units will appeal
§ DRB-Hicom:
Shakes up Proton’s top management
§ Berjaya
Corp: Eyes strategic stake in Atlan
§ Tan
Chong Motor: Confident of double-digit car sales
§ Proton: Bids
farewell to Bursa
§ Hartalega: Prepares to
reduce profit margin for market share
§ Press
Metal: Gets loan for smelter
§ UM
Land: To build international school
§ Scomi
Marine: Proposes capital repayment of 18.5sen per share
§ Fajarbaru
Builder: Bags RM300m LRT sub-contract job
§ Felda
Global: To sell bumi portion shares
§ Construction: Prasarana awaits
government signal
§ Power: Subsidy
leads to gas issue
Global news
§
US
§
US
§
US: Productivity falls, labour costs rise less
than forecast
§
Europe : Draghi
puts onus on politicians, rate unchanged
§
Europe : March
producer-price inflation slows for sixth month
§
China
§
China
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